Priority and non-priority sector GNPAS in Indian commercial banks: a comparison between sub-sectors
Purpose – This study aims to examine the impact and contribution of priority and non-priority sectors, as well as their sub-sectors, on the gross non-performing assets of public, private and foreign sector banks. Design/methodology/approach – The Reserve Bank of India's database on the Indian e...
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Emerald Publishing
2024-03-01
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| Series: | Vilakshan (XIMB Journal of Management) |
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| Online Access: | https://www.emerald.com/insight/content/doi/10.1108/XJM-03-2023-0041/full/pdf |
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| author | Kavita Kanyan Shveta Singh |
| author_facet | Kavita Kanyan Shveta Singh |
| author_sort | Kavita Kanyan |
| collection | DOAJ |
| description | Purpose – This study aims to examine the impact and contribution of priority and non-priority sectors, as well as their sub-sectors, on the gross non-performing assets of public, private and foreign sector banks. Design/methodology/approach – The Reserve Bank of India's database on the Indian economy is used to retrieve data over 13 years (2008–2021). Public sector (12), private sector (22) and foreign sector (44) banks are represented in the sample. Two-way ANOVA, multiple regression and panel regression statistical techniques are used in SPSS and EViews to examine the data. Further, the results are also validated by using robustness testing by applying the fully modified ordinary least square (FMOLS) and dynamic least square (DOLS) regression. Findings – The results showed that, for private and foreign banks, the non-priority sector makes up the majority of the total gross non-performing assets, although both the priority and non-priority sectors are substantial for public sector banks. The largest contributors to the total gross non-performing assets in public, private and foreign banks are industries, agriculture and micro and small businesses. The FMOLS displays robustness results that are qualitatively similar to the baseline result. Practical implications – Based on the study's findings about the patterns of non-performing assets originating from these specific industries, banks might improve the way in which these advanced loans are managed. Originality/value – There has not been much research done on the subject of sub-sector-specific non-performing assets and how they affect total gross non-performing assets across the three sector banks. The study's primary focus will be on the issue of non-performing assets in the priority’s and non-priority’s sub-sectors, namely, agricultural, micro and small businesses, food credit, industries, services, retail loans and other priority and non-priority sectors. |
| format | Article |
| id | doaj-art-cb4aecf00bf24060aa7bb42b5e29fab6 |
| institution | DOAJ |
| issn | 0973-1954 2633-9439 |
| language | English |
| publishDate | 2024-03-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | Vilakshan (XIMB Journal of Management) |
| spelling | doaj-art-cb4aecf00bf24060aa7bb42b5e29fab62025-08-20T02:40:10ZengEmerald PublishingVilakshan (XIMB Journal of Management)0973-19542633-94392024-03-0121114115810.1108/XJM-03-2023-0041Priority and non-priority sector GNPAS in Indian commercial banks: a comparison between sub-sectorsKavita Kanyan0Shveta Singh1Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar, IndiaHaryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar, IndiaPurpose – This study aims to examine the impact and contribution of priority and non-priority sectors, as well as their sub-sectors, on the gross non-performing assets of public, private and foreign sector banks. Design/methodology/approach – The Reserve Bank of India's database on the Indian economy is used to retrieve data over 13 years (2008–2021). Public sector (12), private sector (22) and foreign sector (44) banks are represented in the sample. Two-way ANOVA, multiple regression and panel regression statistical techniques are used in SPSS and EViews to examine the data. Further, the results are also validated by using robustness testing by applying the fully modified ordinary least square (FMOLS) and dynamic least square (DOLS) regression. Findings – The results showed that, for private and foreign banks, the non-priority sector makes up the majority of the total gross non-performing assets, although both the priority and non-priority sectors are substantial for public sector banks. The largest contributors to the total gross non-performing assets in public, private and foreign banks are industries, agriculture and micro and small businesses. The FMOLS displays robustness results that are qualitatively similar to the baseline result. Practical implications – Based on the study's findings about the patterns of non-performing assets originating from these specific industries, banks might improve the way in which these advanced loans are managed. Originality/value – There has not been much research done on the subject of sub-sector-specific non-performing assets and how they affect total gross non-performing assets across the three sector banks. The study's primary focus will be on the issue of non-performing assets in the priority’s and non-priority’s sub-sectors, namely, agricultural, micro and small businesses, food credit, industries, services, retail loans and other priority and non-priority sectors.https://www.emerald.com/insight/content/doi/10.1108/XJM-03-2023-0041/full/pdfGNPAsPriorityNon-priorityAgricultureMSMEFood credit |
| spellingShingle | Kavita Kanyan Shveta Singh Priority and non-priority sector GNPAS in Indian commercial banks: a comparison between sub-sectors Vilakshan (XIMB Journal of Management) GNPAs Priority Non-priority Agriculture MSME Food credit |
| title | Priority and non-priority sector GNPAS in Indian commercial banks: a comparison between sub-sectors |
| title_full | Priority and non-priority sector GNPAS in Indian commercial banks: a comparison between sub-sectors |
| title_fullStr | Priority and non-priority sector GNPAS in Indian commercial banks: a comparison between sub-sectors |
| title_full_unstemmed | Priority and non-priority sector GNPAS in Indian commercial banks: a comparison between sub-sectors |
| title_short | Priority and non-priority sector GNPAS in Indian commercial banks: a comparison between sub-sectors |
| title_sort | priority and non priority sector gnpas in indian commercial banks a comparison between sub sectors |
| topic | GNPAs Priority Non-priority Agriculture MSME Food credit |
| url | https://www.emerald.com/insight/content/doi/10.1108/XJM-03-2023-0041/full/pdf |
| work_keys_str_mv | AT kavitakanyan priorityandnonprioritysectorgnpasinindiancommercialbanksacomparisonbetweensubsectors AT shvetasingh priorityandnonprioritysectorgnpasinindiancommercialbanksacomparisonbetweensubsectors |